Vehicle Electrification Market Overview: According to a comprehensive research report by Market Research Future (MRFR), “Vehicle Electrification Market Research Report, Product, Voltage, Vehicle, Sales Channel and Region - Forecast till 2027” the market is projected to be worth USD 144.65 billion by 2027, registering a CAGR of 12.52% during the forecast period (2021 - 2027), The market was valued at USD 74.25 billion in 2020.
Vehicle Electrification Critical for Enhanced Efficiency
With electrification, vehicles become inherently more efficient. Vehicle buyers are increasingly embracing electrification as gas/fuel prices jump. Over the past few years, the sale of battery-electric, plug-in hybrid, and hybrid vehicles has skyrocketed. The EV industry recovery, changing consumer buying patterns, and new challenges are major market trends. Resultantly, vehicle electrification, a once-niche segment, has become top-of-mind for OEMs.With the rapid introduction of new EV options, the market is projected to grow exponentially during the upcoming period.
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List of the Key Companies Profiled in the Vehicle Electrification Market Research Report are:
- Continental AG (Germany)
- Robert Bosch GmbH (Germany)
- ZF Friedrichshafen AG (Germany)
- JTEKT Corporation (Japan)
- Denso Corporation (Japan)
- Nexteer Automotive (US)
- Mando Corp. (South Korea)
- Mitsubishi Electric Corporation (Japan)
- Borgwarner Inc. (US)
- Johnson Electric (Hong Kong)
- Delphi Automotive PLC (UK)
- Hitachi Automotive Systems Ltd. (Japan)
The vehicle electrification market is experiencing several strategic approaches, such as mergers acquisitions, collaboration, expansion, and product launches. Leading players are making strategic investments in research and development activities and fostering their expansion plans.
Browse In-depth Market Research Report (135 pages) on Vehicle Electrification
For instance, recently, on July 27, 2021, XL Fleet Corp., a leader in vehicle electrification solutions, announced its partnership with ARBOC Specialty Vehicles, LLC, a subsidiary of NFI Group Inc., to electrify ARBOC Freedom low floor buses with the XL Hybrid electric propulsion system.
The partnership would enable the availability of ARBOC low floor bus models as hybrid electric units, providing a cost-effective option for customers looking to improve fuel economy, lower emissions, and advance their sustainability goals without adding charging infrastructure or disrupting their existing operations.
In another instance, on July 23, 2021, Taylor Machine Works Inc., a leader in commercial vehicle electrification, announced a partnership with Proterra Inc., a leader in commercial vehicle electrification technology, to power the next-generation Taylor ZLC Series electric container handler. The company’s next generation of its CZLC series electric container handler features Proterra’s technology.
Proterra’s vision for EV battery technology and its commitment to zero-emission standards align with the Taylor vision. This strategic engineering collaboration between Taylor and Proterra marks their commitment to the electric market for material handling and container handling equipment. Electrifying heavy-duty equipment means protecting environmental health and air quality.
Phasing Out Internal Combustion Engine (ICE) and Accelerating EV Adoption Boost Market Size
The vehicle electrification market outlook appears extremely promising, witnessing continual demand. Besides, the growth and investments in the refurbishing of vehicles stimulate the vehicle electrification market size. Rising government initiatives to slash greenhouse gas emissions and dramatically overhaul a large part of the economy and electrification in the transportation sector escalate the market to newer heights.
Technological advances and increasing demand boost the vehicle electrification market size. Major automakers would continue to follow the footsteps of automotive giants like Volvo, General Motors, and Jaguar, who all have announced their plans for going all-electric. These announcements are influenced by mounting pressure from governments to phase out internal combustion engines.
Fluctuating Prices of Electrification Systems is a Major Headwind
Fluctuating prices and the demand-supply gap in key raw materials and components are major factors impeding the market growth.
The COVID-19 pandemic hit the vehicle electrification industry severely, causing huge revenue losses. Technology providers faced various problems, such as obtaining raw materials components required for the production, attracting workers from quarantines, and delivering end products. Many postponed electrification jobs due to strict lockdown mandates.
Besides, the lockdown mandates put a brake on manufacturing component and device production, which spiked overall product prices and lowered market demand. However, the vehicle electrification market is rapidly returning to normalcy, witnessing a steadily increasing demand. The market demand is expected to rise further following the uplift of the lockdown in many countries.
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The vehicle electrification market analysis is segmented into product, vehicle type, sales channel, and region. The product segment is sub-segmented into start/stop system, EPS, actuators, starter motor alternator, electric vacuum pump, integrated starter generator, and others.
The vehicle type segment is sub-segmented into ICE micro-hybrid, HEV, PHEV, and BEV. The voltage segment is sub-segmented into 12V, 14V, 24V, and 48V. The sales channel segment is sub-segmented into OEM and aftermarket. The region segment is sub-segmented into North America, Europe, Asia-Pacific, and rest-of-the-world.
Asia Pacific dominates the global vehicle electrification market. The largest market share attributes to the proliferation of electric vehicles and increased electrification of commercial vehicles. Besides, increased government regulation to reduce emission and emission standards for gasoline and diesel vehicles enables manufacturers to move towards the development of electric vehicles.
The development of electric vehicles results in the growth of vehicle electrification. Moreover, vast RD investments for new product development and improve performances of existing product lines drive the market growth. The burgeoning automotive industry in the region creates substantial market demand.
Segmentation of Market covered in the research:
Information by Product (Start/Stop System, EPS, Actuators, Starter Motor Alternator, Electric Vacuum Pump, Integrated Starter Generator, Others), Voltage, Vehicle, Sales Channel and Region (North America, South America, Europe, Asia- Pacific, and Middle East Africa)
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